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State Bank Financial Corporation Reports Second Quarter Financial Results
Company Release - 07/24/2014 07:00
  • Second quarter 2014 net income of $7.5 million, or $.22 per diluted share
  • Solid organic loan growth and lower noninterest expenses
  • Signed two definitive merger agreements

ATLANTA, July 24, 2014 (GLOBE NEWSWIRE) -- State Bank Financial Corporation (Nasdaq:STBZ) today announced unaudited financial results for the quarter ended June 30, 2014. Net income for the second quarter of 2014 was $7.5 million, compared to net income of $137,000 for the second quarter of 2013 and net income of $4.3 million for the first quarter of 2014. Fully diluted earnings per share were $.22 in the second quarter of 2014 compared to $.00 in the second quarter of 2013 and $.13 in the first quarter of 2014.

Joe Evans, Chairman and CEO, commented, "Today marks the fifth anniversary of State Bank as well as the expiration of the loss share coverage under our commercial loss share agreements for our first acquisition, and I could not be more pleased with where we stand. As our second quarter results reflect, we believe we are exiting loss share very successfully and are continuing to make solid progress in building the core bank as we announced two healthy bank acquisitions that will enhance our current franchise and expand our brand into a new market. I look forward to continuing our positive momentum in the second half of the year."

Operating Highlights

Net interest income was $33.1 million in the second quarter of 2014, down from $42.4 million in the first quarter of 2014 and $41.6 million in the second quarter of 2013 due to lower accretion income on covered loans. Accretion income on covered loans was $17.1 million in the second quarter of 2014, down from $26.5 million in the first quarter of 2014. The higher accretion income in the previous quarter was due primarily to gains on covered loan pools that closed out in the first quarter of 2014. Interest income on noncovered loans for the second quarter of 2014 was $15.4 million, up from $15.3 million in the prior quarter and $15.1 million in the second quarter of 2013. The yield on noncovered loans decreased to 5.20% in the second quarter of 2014 primarily as a result of payoffs from higher-yielding commercial real estate loans as well as lower yields on new fundings. Interest expense of $1.8 million in the second quarter of 2014 was down versus the prior quarter and the prior year period. Cost of funds for the second quarter of 2014 of 35 basis points was down two basis points from the prior quarter and the prior year period.

The noncovered loan portfolio continued to perform well in the second quarter of 2014 as recoveries were greater than charge-offs for the third consecutive quarter. The provision for loan losses on noncovered loans was $1.0 million in the second quarter of 2014 and was primarily attributable to organic loan growth. The provision on covered loans, net of the FDIC benefit, was a negative $299 thousand in the second quarter of 2014 due to actual cash flows on covered loans exceeding estimated cash flows.

Noninterest income excluding amortization of the FDIC receivable for loss share agreements, which we refer to as the indemnification asset, was $3.3 million for the second quarter of 2014, up from $3.1 million in the first quarter of 2014 primarily due to increases in service charges on deposits, ATM and other income. Total noninterest income for the second quarter of 2014, which includes amortization of the indemnification asset, was $1.4 million compared to negative $12.2 million in the first quarter of 2014 and negative $16.5 million in the second quarter of 2013.

Amortization of the indemnification asset negatively impacted noninterest income by $1.9 million in the second quarter of 2014 compared to $15.3 million in the first quarter of 2014 and $20.8 million in the second quarter of 2013. As of June 30, 2014, we are currently projecting $20 million of scheduled amortization of the indemnification asset with an estimated weighted average life of four quarters, versus $140 million of scheduled loan accretion income with an estimated weighted average life of ten quarters.

Total noninterest expense for the second quarter of 2014 was $22.1 million, down $1.0 million from the first quarter of 2014 and $3.4 million from the second quarter of 2013. Salary and benefit costs decreased $502 thousand in the quarter to $14.6 million for the second quarter of 2014. Loan collection and OREO costs decreased $656 thousand as we experienced a net recovery of $32 thousand in the second quarter of 2014. The second quarter included approximately $265 thousand of merger expenses related to the two acquisitions in the quarter.

Financial Condition

Total assets at June 30, 2014 were $2.58 billion, down from $2.62 billion at March 31, 2014 and $2.61 billion at June 30, 2013. Loans not covered by loss share agreements with the FDIC increased to $1.23 billion at June 30, 2014, a net increase of $63.4 million from the first quarter of 2014. Noncovered loans comprise 85.3% of total gross loans at June 30, 2014. Total net loans were $1.41 billion at June 30, 2014, up $28.8 million from the first quarter of 2014 but down $17.4 million from the second quarter of 2013 as covered loans have declined $122.4 million since the second quarter of 2013.

Total deposits at June 30, 2014 were $2.12 billion, down from $2.14 billion at the end of the first quarter of 2014 and $2.13 billion at the end of the second quarter of 2013. Noninterest-bearing deposits increased $31.5 million from the second quarter of 2013. Period-end noninterest-bearing deposits represented 21.8% of total deposits as of June 30, 2014. Average noninterest-bearing deposits, which increased for the ninth consecutive quarter, were up $24.1 million from the first quarter of 2014 and $55.3 million from the second quarter of 2013. 

Tangible book value per share was $13.58 at the end of the second quarter of 2014. State Bank Financial Corporation continues to be well capitalized, ending the quarter with a leverage ratio of 16.84% and a Tier I risk-based capital ratio of 27.06%.

Recent Transactions

On April 28, 2014, we announced the signing of a definitive agreement with Atlanta Bancorporation, Inc. and its wholly-owned subsidiary, Bank of Atlanta. Upon closing of the transaction, Atlanta Bancorporation will merge into State Bank Financial Corporation, immediately followed by the merger of Bank of Atlanta into State Bank and Trust Company, a wholly-owned subsidiary of State Bank Financial Corporation. Bank of Atlanta is headquartered in midtown Atlanta and operates one additional banking office in Duluth, Georgia. At March 31, 2014, Bank of Atlanta had approximately $198 million of total assets, $123 million of loans and $161 million of deposits. State Bank Financial Corporation has agreed to pay approximately $25 million in cash for all outstanding shares of Atlanta Bancorporation. The agreement has been unanimously approved by the Boards of Directors of both companies and is expected to close no later than the fourth quarter of 2014. Completion of the transaction is subject to certain closing conditions, including customary regulatory approvals. The transaction was approved by shareholders of Atlanta Bancorporation on June 25, 2014.

On June 24, 2014, we announced the signing of a definitive agreement with Georgia-Carolina Bancshares, Inc. and its wholly-owned subsidiary, First Bank of Georgia, in a cash and stock transaction with a purchase price of approximately $82 million, or $22.35 per share. The transaction value at the time of the merger may change due to fluctuations in the price of State Bank Financial Corporation common stock. First Bank of Georgia is headquartered in Augusta, Georgia and operates seven banking offices in the Augusta market and mortgage origination offices in the Augusta and Savannah, Georgia markets. At March 31, 2014, First Bank of Georgia had approximately $523 million of total assets, $317 million of loans and $428 million of deposits. The agreement has been unanimously approved by the Boards of Directors of both companies and is anticipated to close in the first quarter of 2015. Completion of the transaction is subject to certain closing conditions, including customary regulatory approvals and the approval by the shareholders of Georgia-Carolina Bancshares.

Detailed Results

Supplemental tables displaying financial results for the second quarter of 2014, the previous four quarters and the first half of 2014 are included with this press release.

Conference Call

State Bank Chief Executive Officer Joe Evans, Chief Financial Officer Tom Callicutt and Executive Risk Officer Kim Childers will discuss financial and business results for the quarter on a conference call today at 1:00 p.m. EDT. The dial in number is 1.800.754.1336. Please dial in 10 minutes prior to the start of the call to register. You will be asked to provide your name and affiliation/company to join the call. A replay of the conference call will be available shortly after the call's completion in the Investors section on the company's website at www.statebt.com. A slide presentation for today's call is also available in the Investors section on the company's website.

About State Bank Financial Corporation

State Bank Financial Corporation (Nasdaq:STBZ) is the holding company for State Bank and Trust Company, one of Georgia's best-capitalized banks, with approximately $2.6 billion in assets as of June 30, 2014. State Bank has locations in Metro Atlanta and Middle Georgia.

To learn more about State Bank, visit www.statebt.com

The State Bank Financial Corporation logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=14370

Cautionary Note Regarding Forward-Looking Statements

Certain statements in this news release contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: "intend," "plan," "seek," "believe," "expect," "strategy," "future," "likely," "project," "may," "should," "will" and similar references to future periods. Examples of forward-looking statements include, among others, statements related to our expectations with respect to the impact of the expiration of our loss share agreements, including our ability to exit loss share coverage successfully, scheduled amortization of the FDIC receivable for loss share agreements and accretion on covered loans, our ability to continue to build our core franchise, our strategic plan, including projections and expectations of future growth, and expectations with respect to our proposed merger transactions, including the expected timing, completion and other effects of the proposed transactions. Such forward-looking statements are subject to risks, uncertainties, and other factors, such as a downturn in the economy, unanticipated losses related to the integration of, and accounting for, acquired assets and assumed liabilities in our acquisition transactions, access to funding sources, greater than expected noninterest expenses, volatile credit and financial markets both domestic and foreign, potential deterioration in real estate values, regulatory changes and excessive loan losses, and, with respect to the proposed transactions, the inability to obtain the requisite regulatory approvals and meet other closing terms and conditions, any or all of which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Although we believe that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove to be inaccurate. Therefore, we can give no assurance that the results contemplated in the forward-looking statements will be realized. The inclusion of this forward-looking information should not be construed as a representation by our company or any person that future events, plans, or expectations contemplated by our company will be achieved. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. See Item 1A, Risk Factors, in our Annual Report on Form 10-K for the year ended December 31, 2013, for a description of some of the important factors that may affect actual outcomes.

Addition Information About the Merger and Where to Find It

In connection with the proposed merger transaction with Georgia-Carolina Bancshares, Inc., State Bank Financial Corporation will file a registration statement on Form S-4 with the SEC to register State Bank Financial Corporation's shares that will be issued to Georgia-Carolina Bancshares, Inc.'s shareholders in connection with the transaction. The registration statement will include a proxy statement of Georgia-Carolina Bancshares, Inc. and a prospectus of State Bank Financial Corporation, as well as other relevant documents concerning the proposed transaction. The registration statement and the proxy statement/prospectus to be filed with the SEC related to the proposed transaction will contain important information about State Bank Financial Corporation, Georgia-Carolina Bancshares, Inc. and the proposed transaction and related matters. WE URGE SECURITY HOLDERS TO READ THE REGISTRATION STATEMENT AND PROXY/PROSPECTUS WHEN IT BECOMES AVAILABLE (AND ANY OTHER DOCUMENTS FILED WITH THE SEC IN CONNECTION WITH THE TRANSACTION OR INCORPORATED BY REFERENCE INTO THE REGISTRATION STATEMENT AND PROXY/PROSPECTUS) BECAUSE THOSE DOCUMENTS WILL CONTAIN IMPORTANT INFORMATION. Security holders may obtain free copies of these documents and other documents filed with the SEC on the SEC's website at http://www.sec.gov. Security holders may also obtain free copies of the documents filed with the SEC by State Bank Financial Corporation at its website at https://www.statebt.com (which website is not incorporated herein by reference) or by contacting Jeremy Lucas by telephone at 404.239.8626. Security holders may also obtain free copies of the documents filed with the SEC by Georgia-Carolina Bancshares, Inc. at its website at https://www.firstbankofga.com (which website is not incorporated herein by reference) or by contacting Thomas J. Flournoy by telephone at 706.731.6622.

State Bank Financial Corporation, Georgia-Carolina Bancshares, Inc. and their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from the shareholders of Georgia-Carolina Bancshares, Inc. in connection with the proposed merger.  Information regarding these persons who may, under the rules of the SEC, be considered participants in the solicitation of shareholders in connection with the proposed merger will be provided in the proxy statement/prospectus described above when it is filed with the SEC. Additional information regarding each of State Bank Financial Corporation's and Georgia-Carolina Bancshares, Inc.'s respective directors and executive officers, including shareholdings, is included in State Bank Financial Corporation's definitive proxy statement for 2014, which was filed with the SEC on April 11, 2014, and Georgia-Carolina Bancshares, Inc.'s definitive proxy statement for 2014, which was filed with the SEC on April 14, 2014. You can obtain free copies of this document from State Bank Financial Corporation or Georgia-Carolina Bancshares, Inc., respectively, using the contact information above.

State Bank Financial Corporation
2Q14 Financial Supplement: Table 1
Condensed Consolidated Financial Summary Results
Quarterly (Unaudited)              
            2Q14 change vs
(Dollars in thousands, except per share  amounts) 2Q14 1Q14 4Q13 3Q13 2Q13 1Q14 2Q13
Income Statement Highlights              
Total interest income on invested funds  $ 2,522  $ 2,493  $ 2,416  $ 2,587  $ 2,693  $ 29  $ (171)
Interest income on noncovered loans, including fees 15,380 15,275 15,861 15,800 15,141 105 239
Accretion income on covered loans 17,087 26,536 48,065 27,978 25,787 (9,449) (8,700)
Total interest expense 1,846 1,894 1,961 1,981 1,995 (48) (149)
Net interest income 33,143 42,410 64,381 44,384 41,626 (9,267) (8,483)
Provision for loan losses (noncovered loans) 1,000 905 665 1,000 335
Provision for loan losses (covered loans) (299) 590 (98) (636) (1,288) (889) 989
Amortization of FDIC receivable for loss share agreements (1,949) (15,292) (31,372) (18,971) (20,762) 13,343 18,813
Noninterest income 3,318 3,103 3,955 4,471 4,224 215 (906)
Noninterest expense 22,076 23,083 22,718 23,124 25,461 (1,007) (3,385)
Income before income taxes 11,735 6,548 14,344 6,491 250 5,187 11,485
Income tax expense 4,228 2,226 4,927 2,142 113 2,002 4,115
Net income  $ 7,507  $ 4,322  $ 9,417  $ 4,349  $ 137  $ 3,185  $ 7,370
Per Common Share Data              
Basic net income per share  $ .23  $ .13  $ .29  $ .14  $ —  $ .10  $ .23
Diluted net income per share .22 .13 .28 .13 .09 .22
Cash dividends declared per share .04 .03 .03 .03 .03 .01 .01
Book value per share at period end 13.95 13.74 13.62 13.36 13.34 .21 .61
Tangible book value per share at period end 13.58 13.36 13.24 12.97 12.94 .22 .64
Market price at period end 16.91 17.69 18.19 15.87 15.03 (.78) 1.88
Period end shares outstanding 32,130,645 32,123,645 32,094,145 32,076,645 31,926,331 7,000 204,314
Weighted Average Shares Outstanding:              
Basic 32,126,260 32,094,473 32,086,781 31,998,901 31,918,677 31,787 207,583
Diluted 33,589,797 33,644,135 33,519,550 33,296,650 33,124,681 (54,338) 465,116
Average Balance Sheet Highlights              
Noncovered loans, net of unearned income  $ 1,192,494  $ 1,133,802  $ 1,144,116  $ 1,140,052  $ 1,083,549  $ 58,692  $ 108,945
Covered loans 236,178 250,824 258,600 305,487 351,955 (14,646) (115,777)
Loans, net of unearned income 1,428,672 1,384,626 1,402,716 1,445,539 1,435,504 44,046 (6,832)
Assets 2,585,908 2,575,216 2,559,725 2,561,802 2,644,241 10,692 (58,333)
Deposits 2,108,595 2,088,787 2,089,202 2,077,170 2,147,653 19,808 (39,058)
Liabilities 2,141,733 2,136,111 2,130,231 2,134,590 2,217,002 5,622 (75,269)
Equity 444,175 439,105 429,494 427,212 427,239 5,070 16,936
Tangible common equity 432,073 426,828 417,030 414,516 414,181 5,245 17,892
Key Metrics (1)              
Return on average assets 1.16% .68% 1.46% .67% .02% .48% 1.14%
Return on average equity 6.78 3.99 8.70 4.04 .13 2.79 6.65
Yield on earning assets 5.86 7.71 11.60 8.30 7.75 (1.85) (1.89)
Cost of funds .35 .37 .37 .38 .37 (.02) (.02)
Rate on interest-bearing liabilities .45 .46 .47 .47 .46 (.01) (.01)
Net interest margin 5.55 7.38 11.26 7.95 7.40 (1.83) (1.85)
Average equity to average assets 17.18 17.05 16.78 16.68 16.16 .13 1.02
Leverage ratio 16.84 16.67 16.55 16.20 15.57 .17 1.27
Tier I risk-based capital ratio 27.06 27.20 27.85 26.18 25.88 (.14) 1.18
Total risk-based capital ratio 28.32 28.47 29.11 27.44 27.14 (.15) 1.18
Efficiency ratio 63.82 76.19 61.28 77.16 101.14 (12.37) (37.32)
Average loans to average deposits 67.75 66.29 67.14 69.59 66.84 1.46 .91
Noninterest-bearing deposits to total deposits 21.82 22.02 22.00 20.50 20.22 (.20) 1.60
Nonperforming loans to total noncovered loans (2) .16 .18 .20 .25 .32 (.02) (.16)
Nonperforming assets to loans + ORE:              
Noncovered .22 .26 .29 .33 .42 (.04) (.20)
Covered 9.90 13.23 15.22 15.11 13.56 (3.33) (3.66)
               
(1)  Income calculated on a fully tax-equivalent basis.
(2)  The ratio of nonperforming covered loans to total covered loans is not presented, as there are no covered loans designated as nonperforming.
 
 
State Bank Financial Corporation
2Q14 Financial Supplement: Table 2
Condensed Consolidated Balance Sheets
Quarterly (Unaudited)              
            2Q14 change vs
(Dollars in thousands) 2Q14 1Q14 4Q13 3Q13 2Q13 1Q14 2Q13
Assets              
Cash and amounts due from depository institutions $ 8,333 $ 7,314 $ 8,518 $ 7,888 $ 6,783 $ 1,019 $ 1,550
Interest-bearing deposits in other financial institutions 499,400 549,593 590,231 399,267 430,937 (50,193) 68,463
Cash and cash equivalents 507,733 556,907 598,749 407,155 437,720 (49,174) 70,013
Investment securities available-for-sale 494,874 454,053 387,048 374,838 370,146 40,821 124,728
Loans receivable:              
Noncovered under FDIC loss share agreements 1,230,304 1,166,913 1,123,475 1,164,854 1,123,122 63,391 107,182
Covered under FDIC loss share agreements 211,302 246,279 257,494 290,077 333,683 (34,977) (122,381)
Allowance for loan losses (noncovered loans) (17,885) (16,858) (16,656) (16,427) (15,805) (1,027) (2,080)
Allowance for loan losses (covered loans) (17,722) (19,182) (17,409) (12,075) (17,630) 1,460 (92)
Net loans 1,405,999 1,377,152 1,346,904 1,426,429 1,423,370 28,847 (17,371)
Mortgage loans held for sale 726 1,552 897 885 753 (826) (27)
Other real estate owned:              
Noncovered under FDIC loss share agreements 729 901 965 974 1,097 (172) (368)
Covered under FDIC loss share agreements 23,209 37,536 46,222 51,651 52,345 (14,327) (29,136)
Premises and equipment, net 34,820 34,592 33,318 33,988 34,856 228 (36)
Goodwill 10,381 10,381 10,381 10,381 10,381
Other intangibles, net 1,663 1,824 1,986 2,150 2,449 (161) (786)
FDIC receivable for loss share agreements, net 39,250 65,248 103,160 156,549 210,557 (25,998) (171,307)
Other assets 60,896 77,232 71,075 62,101 64,023 (16,336) (3,127)
Total assets $ 2,580,280 $ 2,617,378 $ 2,600,705 $ 2,527,101 $ 2,607,697 $ (37,098) $ (27,417)
Liabilities and Shareholders' Equity              
Noninterest-bearing deposits $ 461,434 $ 471,414 $ 468,138 $ 420,269 $ 429,960 $ (9,980) $ 31,474
Interest-bearing deposits 1,653,779 1,669,647 1,660,187 1,629,642 1,696,124 (15,868) (42,345)
Total deposits 2,115,213 2,141,061 2,128,325 2,049,911 2,126,084 (25,848) (10,871)
Securities sold under agreements to repurchase 1,216 1,082 3,576 (3,576)
Notes payable 2,779 4,371 5,682 5,690 5,698 (1,592) (2,919)
Other liabilities 13,981 30,507 28,299 41,825 46,413 (16,526) (32,432)
Total liabilities 2,131,973 2,175,939 2,163,522 2,098,508 2,181,771 (43,966) (49,798)
Total shareholders' equity 448,307 441,439 437,183 428,593 425,926 6,868 22,381
Total liabilities and shareholders' equity $ 2,580,280 $ 2,617,378 $ 2,600,705 $ 2,527,101 $ 2,607,697 $ (37,098) $ (27,417)
Capital Ratios              
Average equity to average assets 17.18% 17.05% 16.78% 16.68% 16.16% 0.13% 1.02%
Leverage ratio 16.84 16.67 16.55 16.20 15.57 .17 1.27
Tier I risk-based capital ratio 27.06 27.20 27.85 26.18 25.88 (.14) 1.18
Total risk-based capital ratio 28.32 28.47 29.11 27.44 27.14 (.15) 1.18
 
 
State Bank Financial Corporation
2Q14 Financial Supplement: Table 3
Condensed Consolidated Income Statements
Quarterly (Unaudited)              
            2Q14 change vs
(Dollars in thousands, except per share  amounts) 2Q14 1Q14 4Q13 3Q13 2Q13 1Q14 2Q13
Total interest income on invested funds $ 2,522 $ 2,493 $ 2,416 $ 2,587 $ 2,693 $ 29 $ (171)
Interest income on noncovered loans, including fees 15,380 15,275 15,861 15,800 15,141 105 239
Accretion income on covered loans 17,087 26,536 48,065 27,978 25,787 (9,449) (8,700)
Total interest expense 1,846 1,894 1,961 1,981 1,995 (48) (149)
Net interest income 33,143 42,410 64,381 44,384 41,626 (9,267) (8,483)
Provision for loan losses (noncovered loans) 1,000 905 665 1,000 335
Provision for loan losses (covered loans) (299) 590 (98) (636) (1,288) (889) 989
Net interest income after provision for loan losses 32,442 41,820 64,479 44,115 42,249 (9,378) (9,807)
Noninterest Income:              
Amortization of FDIC receivable for loss share agreements (1,949) (15,292) (31,372) (18,971) (20,762) 13,343 18,813
Service charges on deposits 1,196 1,158 1,304 1,353 1,284 38 (88)
Mortgage banking income 163 159 153 260 289 4 (126)
Gain on sale of investment securities 12 11 717 1 12
Payroll fee income 822 953 879 727 705 (131) 117
ATM income 636 590 604 604 635 46 1
Bank-owned life insurance income 329 329 333 342 335 (6)
Other 160 (97) 682 468 976 257 (816)
Total noninterest income 1,369 (12,189) (27,417) (14,500) (16,538) 13,558 17,907
Noninterest Expense:              
Salaries and employee benefits 14,575 15,077 14,500 14,794 15,547 (502) (972)
Occupancy and equipment 2,314 2,529 2,330 2,431 2,550 (215) (236)
Legal and professional fees 996 1,014 1,154 954 1,280 (18) (284)
Marketing 548 332 369 457 350 216 198
Federal deposit insurance premiums and other regulatory fees 337 334 303 939 604 3 (267)
Loan collection and OREO costs (32) 624 733 374 1,944 (656) (1,976)
Data processing 1,714 1,672 1,595 1,551 1,504 42 210
Amortization of intangibles 161 162 164 299 369 (1) (208)
Other 1,463 1,339 1,570 1,325 1,313 124 150
Total noninterest expense 22,076 23,083 22,718 23,124 25,461 (1,007) (3,385)
Income Before Income Taxes 11,735 6,548 14,344 6,491 250 5,187 11,485
Income tax expense 4,228 2,226 4,927 2,142 113 2,002 4,115
Net Income $ 7,507 $ 4,322 $ 9,417 $ 4,349 $ 137 $ 3,185 $ 7,370
Basic Net Income Per Share $ .23 $ .13 $ .29 $ .14 $ — $ .10 $ .23
Diluted Net Income Per Share .22 .13 .28 .13 .09 .22
Weighted Average Shares Outstanding:              
Basic 32,126,260 32,094,473 32,086,781 31,998,901 31,918,677 31,787 207,583
Diluted 33,589,797 33,644,135 33,519,550 33,296,650 33,124,681 (54,338) 465,116

 

State Bank Financial Corporation
2Q14 Financial Supplement: Table 4
Condensed Consolidated Income Statements
Year to Date (Unaudited)
 
  Six Months Ended June 30  
(Dollars in thousands, except per share amounts) 2014 2013  YTD Change
Total interest income on invested funds $ 5,015 $ 5,195 $ (180)
Interest income on noncovered loans, including fees 30,655 29,515 1,140
Accretion income on covered loans 43,623 46,423 (2,800)
Total interest expense 3,740 3,991 (251)
Net interest income 75,553 77,142 (1,589)
Provision for loan losses (noncovered loans) 1,000 1,015 (15)
Provision for loan losses (covered loans) 291 (3,673) 3,964
Net interest income after provision for loan losses 74,262 79,800 (5,538)
Noninterest Income:      
Amortization of FDIC receivable for loss share agreements (17,241) (37,541) 20,300
Service charges on deposits 2,354 2,499 (145)
Mortgage banking income 322 595 (273)
Gain on sale of investment securities 23 364 (341)
Payroll fee income 1,775 1,537 238
ATM income 1,226 1,240 (14)
Bank-owned life insurance income 658 679 (21)
Other 63 1,431 (1,368)
Total noninterest income (10,820) (29,196) 18,376
Noninterest Expense:      
Salaries and employee benefits 29,652 32,942 (3,290)
Occupancy and equipment 4,843 5,006 (163)
Legal and professional fees 2,010 2,881 (871)
Marketing 880 678 202
Federal insurance premiums and other regulatory fees 671 1,073 (402)
Loan collection and OREO costs 592 3,232 (2,640)
Data processing 3,386 2,941 445
Amortization of intangibles 323 739 (416)
Other 2,802 2,633 169
Total noninterest expense 45,159 52,125 (6,966)
Income (Loss) Before Income Taxes 18,283 (1,521) 19,804
Income tax expense (benefit) 6,454 (502) 6,956
Net Income (Loss) $ 11,829 $ (1,019) $ 12,848
Basic Net Income (Loss) Per Share $ .37 $ (.03) $ .40
Diluted Net Income (Loss) Per Share .35 (.03) .38
Weighted Average Shares Outstanding:      
Basic 32,110,454 31,913,754 196,700
Diluted 33,617,054 31,913,754 1,703,300
 
 
State Bank Financial Corporation
2Q14 Financial Supplement: Table 5
Condensed Consolidated Composition of Loans and Deposits at Period Ends
Quarterly (Unaudited)              
            2Q14 change vs
(Dollars in thousands) 2Q14 1Q14 4Q13 3Q13 2Q13 1Q14 2Q13
Composition of Loans              
Noncovered loans:              
Construction, land & land development $ 271,525 $ 259,488 $ 251,043 $ 285,855 $ 295,756 $ 12,037 $ (24,231)
Other commercial real estate 616,418 593,260 550,474 552,579 508,620 23,158 107,798
Total commercial real estate 887,943 852,748 801,517 838,434 804,376 35,195 83,567
Commercial & industrial 55,555 28,140 30,145 27,573 33,908 27,415 21,647
Owner-occupied real estate 167,129 171,221 174,858 181,882 186,652 (4,092) (19,523)
Total commercial & industrial 222,684 199,361 205,003 209,455 220,560 23,323 2,124
Residential real estate 75,683 67,896 66,835 63,386 53,962 7,787 21,721
Consumer & other 43,994 46,908 50,120 53,579 44,224 (2,914) (230)
Total noncovered loans 1,230,304 1,166,913 1,123,475 1,164,854 1,123,122 63,391 107,182
Covered loans:              
Construction, land & land development 23,851 30,770 35,383 40,268 51,660 (6,919) (27,809)
Other commercial real estate 54,212 65,599 67,573 77,040 91,246 (11,387) (37,034)
Total commercial real estate 78,063 96,369 102,956 117,308 142,906 (18,306) (64,843)
Commercial & industrial 3,070 4,216 4,271 6,378 8,059 (1,146) (4,989)
Owner-occupied real estate 43,409 52,791 54,436 55,723 67,568 (9,382) (24,159)
Total commercial & industrial 46,479 57,007 58,707 62,101 75,627 (10,528) (29,148)
Residential real estate 86,371 92,509 95,240 109,806 114,036 (6,138) (27,665)
Consumer & other 389 394 591 862 1,114 (5) (725)
Total covered loans 211,302 246,279 257,494 290,077 333,683 (34,977) (122,381)
Total loans $ 1,441,606 $ 1,413,192 $ 1,380,969 $ 1,454,931 $ 1,456,805 $ 28,414 $ (15,199)
Composition of Deposits              
Noninterest-bearing demand deposits $ 461,434 $ 471,414 $ 468,138 $ 420,269 $ 429,960 $ (9,980) $ 31,474
Interest-bearing transaction accounts 387,855 382,697 367,983 304,085 351,289 5,158 36,566
Savings and money market deposits 898,833 903,198 892,136 908,410 911,415 (4,365) (12,582)
Time deposits less than $100,000 155,918 162,002 168,611 177,634 186,874 (6,084) (30,956)
Time deposits $100,000 or greater 112,705 116,858 124,827 132,538 139,671 (4,153) (26,966)
Brokered and wholesale time deposits 98,468 104,892 106,630 106,975 106,875 (6,424) (8,407)
Total deposits $ 2,115,213 $ 2,141,061 $ 2,128,325 $ 2,049,911 $ 2,126,084 $ (25,848) $ (10,871)
 
 
State Bank Financial Corporation
2Q14 Financial Supplement: Table 6
Condensed Consolidated Asset Quality Data
Quarterly (Unaudited)              
            2Q14 change vs
(Dollars in thousands) 2Q14 1Q14 4Q13 3Q13 2Q13 1Q14 2Q13
Nonperforming noncovered assets:              
Nonaccrual loans $ 1,063 $ 1,265 $ 1,396 $ 1,978 $ 2,704 $ (202) $ (1,641)
Troubled debt restructurings 875 866 869 876 890 9 (15)
Total nonperforming noncovered loans 1,938 2,131 2,265 2,854 3,594 (193) (1,656)
Other real estate owned 729 901 965 974 1,097 (172) (368)
Total nonperforming noncovered assets 2,667 3,032 3,230 3,828 4,691 (365) (2,024)
Nonperforming covered assets:              
Other real estate owned (1) $ 23,209 $ 37,536 $ 46,222 $ 51,651 $ 52,345 $ (14,327) $ (29,136)
Noncovered assets:              
Charge-offs $ 79 $ 136 $ 67 $ 330 $ 8 $ (57) $ 71
Recoveries 106 338 296 47 26 (232) 80
Net (recoveries) charge-offs $ (27) $ (202) $ (229) $ 283 $ (18) $ 175 $ (9)
Ratios:              
Annualized QTD net (recoveries) charge-offs to total average noncovered loans (.01)% (.07)% (.08)% .10% (.01)% .06% —%
Nonperforming loans to total noncovered loans (2) .16 .18 .20 .25 .32 (.02) (.16)
Nonperforming assets to loans + ORE:              
Noncovered .22 .26 .29 .33 .42 (.04) (.20)
Covered 9.90 13.23 15.22 15.11 13.56 (3.33) (3.66)
Allowance for loan losses to loans:              
Noncovered 1.45 1.44 1.48 1.41 1.41 .01 .04
Covered 8.39 7.79 6.76 4.16 5.28 .60 3.11
               
               
(1)  Total nonperforming assets for covered assets consist of other real estate only. There are no covered loans designated as nonperforming.
(2)  The ratio of nonperforming covered loans to total covered loans is not presented, as there are no covered loans designated as nonperforming.
 
 
State Bank Financial Corporation
2Q14 Financial Supplement: Table 7
Condensed Consolidated Average Balances and Yield Analysis
Quarterly (Unaudited)              
            2Q14 change vs
(Dollars in thousands) 2Q14 1Q14 4Q13 3Q13 2Q13 1Q14 2Q13
Selected Average Balances              
Interest-bearing deposits in other financial institutions $ 490,009 $ 518,362 $ 489,046 $ 398,391 $ 465,823 $ (28,353) $ 24,186
Taxable investment securities 475,739 425,158 374,416 369,485 352,955 50,581 122,784
Nontaxable investment securities 5,501 5,538 5,559 5,836 6,436 (37) (935)
Noncovered loans receivable (1) 1,192,494 1,133,802 1,144,116 1,140,052 1,083,549 58,692 108,945
Covered loans receivable 236,178 250,824 258,600 305,487 351,955 (14,646) (115,777)
Total earning assets 2,399,921 2,333,684 2,271,737 2,219,251 2,260,718 66,237 139,203
Total nonearning assets 185,987 241,532 287,988 342,551 383,523 (55,545) (197,536)
Total assets 2,585,908 2,575,216 2,559,725 2,561,802 2,644,241 10,692 (58,333)
Interest-bearing transaction accounts 376,143 357,988 338,502 320,168 360,221 18,155 15,922
Savings & money market deposits 892,168 894,994 909,999 908,275 936,819 (2,826) (44,651)
Time deposits less than $100,000 159,296 165,158 173,061 181,865 190,795 (5,862) (31,499)
Time deposits $100,000 or greater 114,652 122,217 129,384 137,147 142,364 (7,565) (27,712)
Brokered and wholesale time deposits 100,395 106,555 106,676 106,918 106,818 (6,160) (6,423)
Notes payable 3,365 5,212 5,686 5,695 5,026 (1,847) (1,661)
Securities sold under agreements to repurchase 727 675 2,438 5,083 (727) (5,083)
Total interest-bearing liabilities 1,646,019 1,652,851 1,663,983 1,662,506 1,747,126 (6,832) (101,107)
Noninterest-bearing deposits 465,941 441,875 431,580 422,797 410,636 24,066 55,305
Other liabilities 29,773 41,385 34,668 49,287 59,240 (11,612) (29,467)
Shareholders' equity 444,175 439,105 429,494 427,212 427,239 5,070 16,936
Total liabilities and shareholders' equity 2,585,908 2,575,216 2,559,725 2,561,802 2,644,241 10,692 (58,333)
Interest Margins (2)              
Interest-bearing deposits in other financial institutions .26% .27% .27% .31% .27% (.01)% (.01)%
Taxable investment securities 1.84 2.03 2.19 2.42 2.68 (.19) (.84)
Nontaxable investment securities, tax-equivalent basis (3) 2.33 2.34 2.28 2.31 2.31 (.01) .02
Noncovered loans receivable, tax-equivalent basis (4) 5.20 5.49 5.53 5.52 5.63 (.29) (.43)
Covered loans receivable 29.02 42.91 73.74 36.34 29.39 (13.89) (.37)
Total earning assets 5.86% 7.71% 11.60% 8.30% 7.75% (1.85)% (1.89)%
Interest-bearing transaction accounts .12 .12 .11 .11 .10 .02
Savings & money market deposits .45 .44 .43 .42 .42 .01 .03
Time deposits less than $100,000 .53 .54 .55 .57 .59 (.01) (.06)
Time deposits $100,000 or greater .66 .69 .67 .71 .72 (.03) (.06)
Brokered and wholesale time deposits .95 .93 .93 .93 .93 .02 .02
Notes payable 10.37 11.52 11.44 11.49 10.77 (1.15) (.40)
Securities sold under agreements to repurchase .16 .08 (.08)
Total interest-bearing liabilities .45 .46 .47 .47 .46 (.01) (.01)
Net interest spread 5.41 7.25 11.13 7.83 7.29 (1.84) (1.88)
Net interest margin 5.55% 7.38% 11.26% 7.95% 7.40% (1.83)% (1.85)%
               
(1)  Includes average nonaccrual loans of $1,970 for 2Q14, $2,098 for 1Q14, $2,642 for 4Q13, $2,371 for 3Q13, and $4,136 for 2Q13.
(2)  Annualized for the applicable period.
(3)  Reflects taxable equivalent adjustments using the federal statutory tax rate of 35% in adjusting interest on tax-exempt securities to a fully taxable basis. The taxable equivalent adjustments included above amount to $11 for 2Q14, $11 for 1Q14, $11 for 4Q13, $12 for 3Q13, and $13 for 2Q13.
(4)  Reflects taxable equivalent adjustments using the federal statutory tax rate of 35% in adjusting tax-exempt loan interest income to a fully taxable basis. The taxable equivalent adjustments included above amount to $66 for 2Q14, $65 for 1Q14, $97 for 4Q13, $72 for 3Q13, and $73 for 2Q13.
CONTACT: Media Contact:
         David Rubinger 404.502.1240 / david.rubinger@statebt.com
         Investor Relations Contact:
         Jeremy Lucas 404.239.8626 / jeremy.lucas@statebt.com

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